So this all started when I decided to ditch my Bearing buddies and go with the EZ lube covers with the rubber plug. When I did that I also put some CRC Brake Quite on the outside of the pads because they were making some noise. What I think is happening is this is causing the brakes to drag and get hot.

After towing any distance the plugs are bulged out and have developed pin holes and are leaking grease. The hubs are really hot. The hubs never got this hot before, rear axle hubs are fine. I plan on cleaning the CRC off the pads or replacing them to see if they don't get as hot. Does it sound like I'm chasing this problem the right way? Any body ever had a problem like this before.

Also, whats a better way to quite trailer disc brakes?

A slight brake drag will cause overheating no matter what you put on them. Something is causing them to drag. Details, type brakes? salt or fresh water etc.?

Tie down Mfg ventilated disc brakes. Brackish water and flushed after every dunk. Never had this problem even towing to Florida and back from VA. I'm pretty sure I've pin pointed the problem to just after I used the Brake Quiet. I'm gonna replace the pads, bleed the brakes and regrease the bearings. I'll check and inspect the brake line for kinks too.

Tie downs are pretty notorious for having the pistons seize, I have had two buddies with them in salt and both had lots of them had lots issues and junked them or redid calipers at least once a year.